Zürcher Kantonalbank once again achieves a very encouraging half-year result

Zürcher Kantonalbank generated a consolidated profit before taxes totalling CHF 761 million in a challenging environment (previous year: CHF 689 million). This result is CHF 72 million or 10.4 percent higher than in the previous year. The consolidated profit after taxes is CHF 668 million (previous year: CHF 601 million). “I am delighted that we achieved such a very encouraging result even in this challenging half-year period. Our operating performance has improved overall in all areas, and we are generating broad-based growth in our core segments, which is reflected in our operating income. Our diversification strategy has once again proven its worth. In addition, we gained almost 13,000 new clients in the first half of 2025 – thanks in particular to ZKB Banking, our successful digital everyday banking service”, says Urs Baumann, CEO of Zürcher Kantonalbank.

Solid net interest income despite challenging interest rate environment

As a result of the low interest rate environment, the result from interest operations – the bank’s most important income stream – stands at CHF 822 million. As expected, this outcome is slightly below the previous year’s good figure (CHF 858 million).

The mortgage loan and deposit business continued to develop positively. Mortgage loans increased by CHF 2.5 billion or 2.4 percent to CHF 109.1 billion compared to the end of 2024, even though quality standards remained high. On the liabilities side, amounts due in respect of customer deposits rose from CHF 107.0 billion to CHF 109.0 billion.

Strong investment and trading business

The bank’s second largest income stream, commission business and services, achieved a net result of CHF 530 million, which is 4.2 percent higher than in the previous year. This result is attributable mainly to commission income from securities trading and investment activities (CHF 606 million), which rose by CHF 50 million or 8.9 percent compared to the same period last year.

Client assets – consisting of managed assets totalling CHF 465.1 billion and assets with custody services amounting to CHF 69.3 billion – have risen by around CHF 13.6 billion to CHF 534.4 billion since the beginning of the year. The broad-based net new money inflow totalled CHF 7.4 billion, which is significantly higher than the net reduction in managed assets of around CHF 3.2 billion resulting from the sale of Zürcher Kantonalbank Österreich AG.

At CHF 233 million, the result from trading activities was significantly higher than in the previous year (CHF 177 million). The very good trading result reflects the dynamic market environment, which was characterised by uncertainty due to the tariffs policy in the US and geopolitical tensions. The bank successfully exploited the opportunities arising from market volatility.

Overall, operating income increased by 2.6 percent to CHF 1,600 million in the first half of 2025 (previous year: CHF 1,560 million).

Higher headcount due to company growth

Operating expenses, at CHF 884 million in the first half of 2025, were CHF 24 million or 2.8 percent higher than in the previous year. Personnel expenses rose by 2.2 percent to CHF 625 million due to higher headcount (previous year: CHF 612 million) – the bank’s headcount has increased by 98 full-time equivalents (FTEs) since the end of June 2024 to a total of now 5,750 FTEs, adjusted for part-time work. The higher general and administrative expenses (up 4.4 percent) reflect the increased costs for third-party services – such as for financial information, licence costs and maintenance.

The cost/income ratio (CIR) is 54.7 percent – as in the first half of 2024 – and therefore within the target.

Decrease in depreciation and amortisation and lower provisions

At CHF 24 million (previous year: CHF 32 million), the value adjustments on participations as well as depreciation and amortisation of bank premises, tangible fixed assets and intangible assets decreased by CHF 7 million or 23.2 percent compared with the previous year. The line item Changes to provisions and other value adjustments and losses amounts to a net release totalling CHF 6 million (previous year: net release of CHF 10 million). This difference is attributable largely to the net release of provisions for off-balance-sheet default risks totalling CHF 9 million (previous year: CHF 12 million).

Successful sale of the Austrian subsidiary

The extraordinary result totalling CHF 62 million is attributable primarily to the successful sale of Zürcher Kantonalbank Österreich AG. This subsidiary was transferred in full to Liechtensteinische Landesbank AG on 9 January 2025.

Very encouraging half-year result

Zürcher Kantonalbank generated a consolidated profit before taxes totalling CHF 761 million in a challenging environment (previous year: CHF 689 million). This result is CHF 72 million or 10.4 percent higher than in the previous year. The slightly higher tax expenses (CHF 93 million; previous year: CHF 88 million) include primarily the OECD minimum taxation, which is levied in the form of a supplementary tax. The consolidated profit after taxes is CHF 668 million (previous year: CHF 601 million), which corresponds to a year-on-year increase of 11.1 percent. The return on equity (RoE) is higher at 9.1 percent compared to 8.6 percent in the previous year.

Stable balance sheet structure

The balance sheet structure remains fundamentally unchanged. At CHF 199.8 billion, total assets are slightly below the comparable figure at the end of 2024 (CHF 202.6 billion). This decline, which occurred despite the positive growth achieved in the mortgage loan and deposit business, is attributable on the assets side primarily to lower amounts due from securities financing transactions (– CHF 4.3 billion), and on the liabilities side to lower amounts due to banks (– CHF 6.6 billion) as a result of fewer opportunities in the money market business.

Capital and liquidity base significantly exceeds regulatory requirements

Zürcher Kantonalbank increased its risk-based total loss-absorbing capacity (risk-based TLAC ratio) to 31.5 percent as at 30 June 2025, primarily as a result of the implementation of the Basel III Final requirements (end of 2024: 25.7 percent). Its capitalisation is therefore extremely strong and significantly above the capital requirement of 20.7 percent as a systemically important bank. The risk-based equity ratio included in the TLAC ratio on a going-concern basis, at 22.5 percent as at 30 June 2025 (end of 2024: 18.0 percent), significantly exceeds the current capital adequacy requirement of 13.8 percent.

The TLAC leverage ratio increased from 9.8 percent as at the end of 2024 to 10.0 percent. The leverage ratio (going-concern), at 7.1 percent (end of 2024: 6.8 percent), is likewise well above the requirement of 4.5 percent.

All liquidity ratios remain at a high level and comfortably fulfil the regulatory requirements. The short-term liquidity ratio (liquidity coverage ratio), for example, is 131 percent as at mid-2025 (end of 2024: 142 percent), and the long-term liquidity ratio (net stable funding ratio, NSFR) is 115 percent (end of 2024: 116 percent).

The rating agencies Fitch, Moody’s and Standard & Poor’s left their ratings for Zürcher Kantonalbank unchanged at AAA and Aaa, respectively. Zürcher Kantonalbank is also one of the safest universal banks in the world on a stand-alone basis (without taking into account any support from the canton), as evidenced by the standalone rating of aa- (Standard & Poor’s).

Outlook

“The geopolitical environment remains volatile and uncertain. Nevertheless, our diversified business model enables us to achieve good results even in a challenging environment. The half-year result, our strong operating performance and our growth opportunities in the Private and Corporate Clients segments as well as in Private Banking and Asset Management make me confident that we will once again be able to realise highly favourable annual result”, says CEO Urs Baumann.

Downloads

Half-yearly report 2025 (PDF, 337 KB)
Tables half-year results 2025 (PDF, 87 KB)